The embattled founder of crypto exchange FTX, Sam Bankman-Fried (SBF), is still embroiled in a high-profile fraud case. Even though the charges have not gone to trial yet, Bankman-Fried recently filed a motion to dismiss ten out of the thirteen criminal charges leveled against him, arguing that they were duplicative.
Bankman-Fried’s legal team is now trying to shift the blame on his former law firm, Fenwick & West, in yet another attempt to avoid criminal charges. They have requested for prosecutors to provide them with documents or allow them to subpoena Fenwick & West, claiming that these documents will help with Bankman-Fried’s defense. They argue that the law firm’s advice led to the events that gave rise to the criminal charges, including lending to executives, using encrypted messaging platforms, and potential violations of US banking regulations.
The filing has not gone over well with the crypto community, with some claiming that Bankman-Fried, who has a legal background, should have known that he was receiving bad advice that could have led to fraudulent activities and money laundering. There are also concerns that Fenwick & West directed Bankman-Fried to misappropriate customer funds, but the law firm has yet to issue a statement.
Some executives from FTX and Alameda, including Caroline Ellison and Gary Wang, have already pleaded guilty to similar fraud charges and are cooperating with prosecutors. The FTX case is of significant interest due to the exchange’s previous status as one of the largest cryptocurrency exchanges by trading volume. The collapse of the exchange had far-reaching consequences for the industry at large.
Compiled by Coinbold